New York City’s top scofflaw, the late Herman Kraus, a contractor turned affordable developer, had been arguing and litigating with the Big Apple and others over property taxes and interest for a dozen properties since 1991 — some 27 years.
Lawsuits and negotiations with City Hall have now reduced that to six buildings that still owe more than $106.38 million.
These are all part of Buff, a 250-unit affordable project in Williamsburg that Kraus’ company owns with other investors as, “Development Associates Buff.”
The company noted that after the tax exemptions ended in 1991, other expenses were incurred, but it received just two rent increases in 25 years.
“The owners have been working with the city on a resolution to settlement of all outstanding matters, and are committed to concluding that process as soon as possible,” a company spokesperson said.
A spokesman for the city’s Law Department added, “Over the last four years, the Kraus company has paid nearly $2 million in real property taxes to the City.
The city is in discussions with the owners regarding satisfying this property tax debt.”
The Finance Department’s 10-day Lien List shows Buff’s top scofflaw building on South 2ns Street in Brooklyn owes $22.78 million — $26.47 million as of Tuesday.
The city’s second-largest scofflaw, 26 Lexington Ave., with a second address at 5 Quincy St., in Brooklyn, owes $21.07 million and hasn’t paid a dime since 1994.
